1 Welcome to Look Inward: How to use Data to Identify Opportunities and Foster Internal Mobility And… May 4, 2016 archumancapital.com
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3 They recognize the risks… Do you?From the PepsiCo 2013 Annual Report P. 18 “If we are unable to hire or retain key employees or a highly skilled and diverse workforce, it could have a negative impact on our business. Our continued growth requires us to hire, retain and develop our leadership bench and a highly skilled and diverse workforce. We compete to hire new employees and then must train them and develop their skills and competencies. Any unplanned turnover or our failure to develop an adequate succession plan to backfill current leadership positions, including our Chief Executive Officer, or to hire and retain a diverse workforce could deplete our institutional knowledge base and erode our competitive advantage. In addition, our operating results could be adversely affected by increased costs due to increased competition for employees, higher employee turnover or increased employee benefit costs.” I promise I won’t stand up here reading slides to you, but in this case, I want you to see and hear it EXACTLY so… Read the body of the slide Then reveal the source of the statement Then present the question They recognize the risks… Do you? archumancapital.com
4 Agenda: A trip around the triangle – 3 points of view…Find out what your obstacles are Reasons to embrace talent mobility and the benefits of doing so A data exchange opportunity Our agenda for today! archumancapital.com
5 So…. What IS internal mobility anyway?Internal Mobility (aka mobility and talent mobility) is a dynamic internal process for moving talent from role to role at the leadership, professional, and operational levels To explore data aspects of internal mobility, we must first have a common definition OF internal mobility! And what better place to go then the “dictionary”? In this case the “dictionary” being Bersin by Deloitte who defines internal mobility as follows (see the slide). NOTICE KEY WORDS – “Dynamic”, “Process”, and the fact that it happens at multiple levels in multiple kinds of roles! - Bersin by Deloitte archumancapital.com
6 Three points of view: Begin at the end Organization Employee Dataarchumancapital.com
7 Organization Data Employee “Successful internal mobility programs help hiring managers learn about the skills, experiences and aspirations of internal candidates, while employees learn about new roles that will allow them contribute to the organization in new and different ways. This kind of organizational transparency can increase employee engagement and retention while shortening time to productivity and reducing competitive intelligence leakage.” - David Marzo, Futurestep Vice President and General Manager /3/15 Does the organization treat and “pursue” internal talent the way it treats and pursues external talent? (Ex) follow up calls, managing expectations on time frames, providing complete and accurate job descriptions. AND does it treat internal talent BETTER (after all, they ARE your co-workers! You WILL see them at the company holiday party!) (ex) do internal candidates have a chance to meet with current occupants of the position before deciding to apply? Have you ever given thought to the need to “reduce competitive intelligence leakage”? Who wants to tell me what they think that is? Did you ever consider that reducing competitive intelligence leakage would be a benefit to an effective internal mobility program? archumancapital.com
8 Organization A story of Talent Management Data EmployeeConsider different employee populations and their wants and needs: Managers job descriptions & training: C-Suite and Senior Management Integration of systems: Within HR & without Mid-level managers Millenials or other generational groups Strategic Workforce Planning: Futuring aka Scenario Expats Planning Precedence: Who “owns” talent? It SHOULD be the organization, Has the organization traditionally embraced talent mobility? NOT the business unit… Integration into Performance Management: The Recession hangover: BEWARE! Is it? Why not? How? What about Reward & Recognition? Does the organization treat and “pursue” internal talent the way it treats and pursues external talent? (Ex) follow up calls, managing expectations on time frames, providing complete and accurate job descriptions. AND does it treat internal talent BETTER (after all, they ARE your co-workers! You WILL see them at the company holiday party!) (ex) do internal candidates have a chance to meet with current occupants of the position before deciding to apply? archumancapital.com
9 Poll Question : What is the biggest obstacle to embracing talent mobility in your organization which you need to climb?
10 Top Ten Nonfinancial Variables Considered by Financial Analysts1 – EXECUTION of Corporate Strategy 4 – Innovation 5 – Ability to attract and retain talented people 7 – Management expertise archumancapital.com
11 Organization Employee Data “Successful internal mobility programs help hiring managers learn about the skills, experiences and aspirations of internal candidates, while employees learn about new roles that will allow them contribute to the organization in new and different ways. This kind of organizational transparency can increase employee engagement and retention while shortening time to productivity and reducing competitive intelligence leakage.” - David Marzo, Futurestep Vice President and General Manager /3/15 YES! You DID just see this quote! But now look at it from the employee POV! archumancapital.com
12 Organization “Organizations need One-size-fits-one career paths that allow employees to advance business goals and allow them to develop their skills and grow!“ Employee Data “Nearly one-third of executives surveys said employees have to keep their intent to apply for new positions within their company a secret form their current managers.” - Korn Ferry Future Step Survey November 2015 Begin at the beginning… Orientation! Performance management integration Job bidding - Employees indicate an interest in a position that they feel qualified for before one becomes available Here’s some insight - If your employees have to HIDE that they are looking to transfer or promote without their current boss knowing about it, you do NOT have a magnetic culture… We all know people quit managers way more often then they quit companies, so… are these the kinds of managers that will attract and retain the best and brightest? AND Are these the kinds of manager who are helping your organization develop your next generation of leadership? Only you can answer that… archumancapital.com
13 23M - 30M = -7M! Top generational talent related“next job selection” characteristics: Characteristic Gen X Millenials Will develop my skills for the future 1 Offers a clear career path 5 4 Will pay for my continuing education 9 Attraction Drivers Employer View Employee View Career Advancement Opportunities 1 3 Learning & Development Opportunities 6 4 archumancapital.com
14 The voice of the employeearchumancapital.com
15 Hear voices of employees in “great workplaces”:- Credibility Communications & Competence - Respect Professional Development Collaboration (with both employees & managers!) -Fairness Impartiality (otherwise only the ones you know/like are thought of!) archumancapital.com
16 Data Data quality – Beware of GIGO! Leaders want to know:Organization Data Employee Data quality – Beware of GIGO! Leaders want to know: How many internal people are applying for your openings? Why aren’t more people applying? Who is applying and how do their qualifications match to our needs? What you don’t have, you can’t use. archumancapital.com
17 Stand up and be Counted! Everyone stand up , when you can’t answer yes please sit… At your current organization, how many of you track: Turnover? Voluntary & Involuntary Turnover? Reason codes to segment specific reasons for Voluntary vs. Involuntary Turnover? Desirable Turnover? Regrettable Turnover? archumancapital.com
18 Desirable Turnover? What exactly is that??1. Bottom performer leaves on their own 2. Bottom performer terminated 3. Average/lower level performer gets replaced by someone that becomes a superior performer 4. Lower performer is replaced by promoting someone inside that needed more challenge or growth to develop (thus improving the organization, increasing internal movement) 5. Employee was a notoriously bad manager 6. Non-diverse employee gets replaced by a diverse one 7. Employee was a trouble maker - required lots of management time 8. Employee highly paid due to tenure but delivered no more than workers earning much less. According to Dr. John Sullivan in his April 2009 article for ERE Recruiting Intelligence entitled “Not All Employee Turnover Is Bad — Celebrate “Losing the Losers” “ at least 25% of all turnover is desirable turnover and he provides 14 different categories of departures where the leaving is not a bad thing! Some of the most notable on the list are… (see slide). Avoids OUR need to terminate them! Performance management system worked! We may not know his immediately, but it’s an upgrade! This is a good thing! Ties to our discussion! Are you REALLY going to complain about this one?? Especially important for Affirmative Action employers who have an opportunity to address under utilization and make progress towards placement goals! I call these people time sucks! Their departure will free up time for much more beneficial actives! This article is in the reference slide and well worth reading! archumancapital.com
19 Turnover v. Regrettable TurnoverTurnover % = # of Separations Avg. # of Employees x 100 Many organizations track turnover, and do so over multiple time periods (monthly/quarterly/annually) to predict and plan for seasonal influences and monitor trends over time But for those of you that don’t track regrettable turnover, here’s how you do it… archumancapital.com
20 Turnover v. Regrettable Turnover - ExampleTurnover % = # of Separations Avg. # of Employees x 100 100 1800 X 100 = 5.56% While it is true, this ORGANIZATIONAL T/O rate is low at on 5 and a half percent, of the people you lost in this period, nearly 17% came from your high potential pool!! So you are losing a substantial percentage of your BEST people. The people you think of as tomorrow’s leaders are leaving you! THAT is a problem. 12 72 X 100 = 16.67% archumancapital.com
21 Reasons to embrace talent mobilityAccording to the Wall Street Journal from February 9th of this year, based on the DoL’s monthly Job Openings and Labor Turnover Survey or the JOLTS report, voluntary quitting has hit the highest level in 9 years! Returning to pre recession levels! This means people not only can leave, but ARE leaving. Your internal mobility opportunities can be an effective tool to make them want to stay… or NOT! archumancapital.com
22 Introducing… the Career Path Ratio!The number of employees moving upward in the organization as a percentage of all employee movement Total Career Path Ratio is promotions as a percentage of all employee movement (transfers & promotions) within the organization. This metric is an indicator of career development opportunities existing within the organization for all employees ASK - How many of you have heard of the metric “the career path ratio”? Raise of hands. archumancapital.com
23 Introducing… the Career Path Ratio!Total Promotions - The total number of employees who were promoted to a higher-level position or one of greater responsibility during the survey period. Total Transfers - The total number of employees who were transferred to a different department or different job category of an equal level of responsibility during the survey period. It’s important that the foundation is correct, so with promos – note the higher position/greater authority aspect. Lateral moves are counted as part of transfers. While laterals are an important part of career growth and may position a person for FUTURE advancement, for this sake, they are not counted as Promos! Look to your org charts and job descriptions and exempt/non-exempt factors to be certain the two are “coded” properly archumancapital.com
24 The Career Path Ratio – an example!Promos – Transfers – Career path ratio: 71% __Total Promotions (TP)__ (Total Promotions (TP) + Total Transfers (TT)) = XX% __(TP) 100__ (TP) (TT) 40 = Therefore: 100/140 = 71.42% CONCLUSION – many development/advancement opportunities! BUT, don’t look at this alone! archumancapital.com
25 Justification(s) (aka the Business Case)Long term financial: Increased and/or industry leading annualized returns! Short term financial: Lower turnover More job applicants Lower absenteeism (UK) SWP – Talent Executes the Strategy! Cost effective Culture/Great workplace Staff Retention/Customer Satisfaction Efficiency Savin’ the best for last - Achieve your mission, vision & support your values Internal networks develop and grow through internal mobility efforts. This helps improve: Communication - more people and get info from and give info to more people Organizational agility - ability to react better and faster because of a better grasp of the big picture, how things interrelate, and how to get things DONE archumancapital.com
26 Some examples of major corporations that maintain “alumni groups” on LinkedInIf you have invested time & effort into developing people, stay in touch with them! They might come back, allowing you to continue to get the return on your investment of offering them growth and advancement opportunities originally! BUT While they’re “away” they can be evangelists for your employer brand! Keep them informed about your new openings! They can share the great opportunities your organization offered when they worked for you, and help you recruit more people of their same caliber! archumancapital.com
27 A present for you… Additional data point ideas!A data exchange opportunity “The best way to have a good idea is to have a lot of ideas.” - Dr. Linus Pauling The only person to win two undivided Nobel Prizes A present for you… Additional data point ideas! Anyone who would like to receive a list of potentially useful data points, to consider collecting at YOUR organization, or who has some ideas of valuable items they have collected, and would like to exchange ideas, please send an to with “Request for data ideas” in the subject line and it’ll be sent out to you! archumancapital.com
28 Q & A time archumancapital.com
29 Human capital gets you to the peak of your arc.Thank you! Adam R. Calli SWP, SHRM-SCP, SPHR Principal Consultant Arc Human Capital, LLC Human capital gets you to the peak of your arc. We keep you there. archumancapital.com
30 For your further reading pleasure…Not All Employee Turnover Is Bad — Celebrate “Losing the Losers” By Dr. John Sullivan April 6, 2009 ERE What is the Employee Turnover Definition? How is Employee Turnover calculated? What is Regretted Employee Turnover? March 2008 Futurestep Survey: One-third say employees need to keep intent to apply for another job within their companies a secret archumancapital.com